What a bounce – onward and upward???

I’m on holidays with the family in FIJI at present but I saw there was a big bounce in the Australian Dollar yesterday and in other markets overnight. thought this might be a useful update from the gurus at MacroMon.

My colleagues at MacroBusiness will also be updating everything as it happens.

The Australian Dollar has clearly broken the downtrend from March but has already struggled today pulling back somewhat. My view remains unchanged.

I’ll update from time to time but I will be back on the 23rd.

All the best

Gregory McKenna

Usual disclaimer folks – not advice, i havent taken you circumstaances into account.

After clear breaks of their short-term uptrend and 50-day moving averages, the major U.S. equity indices have staged a powerful two day rally off their Tuesday intraday lows. Many were caught off guard as almost all indicators were signalling and flashing an intermediate term correction was in the works. Copper’s break made it too easy to sell equities.

After a nice two day bounce, stocks have retraced almost 50 percent of the correction which began after the April 2nd highs on the S&P500 and Dow; and the March 27th highs on the Nasdaq and Russell 2000. The table below shows that all four indices closed just shy of the key 50 percent retracement level.

So is that it? We, like everyone else, have no idea.

The indices need to close above their .618 retracement level, which is less than a 1 percent move…